We all know the deal. Investing in start-ups is the beginning of an exciting journey. After evaluating our options, we choose a specific idea to work alongside founders and other investors. We care about this new project and want to know and understand how the founders create their business model. We want to know how they think and yearn.
When Angel investors enter the game, the start-ups are usually in their pre-seed, seed stage. Investing at this stage makes it extremely hard to know the value of a company.
Generally, Angel investors decide to invest because they believe in this new idea, find it innovative, or are interested in that specific market. They rarely invest for the mere goal of getting profit from it.
Truth be told, the road to liquidity takes years. Start-ups are illiquid assets, and regardless of the potential and all the different risk studies we can conduct, it is almost impossible to know when we will get returns or when it will be the perfect time for a liquidity event.
Every time we invest in a start-up there is a high risk. And a long wait ahead of us to get any returns. We must be ready to jump off the train if we need to at any round.
Sometimes, angel investors can not afford a three years wait until their first round to get liquidity or jump off the train with a liquidity event. That is why COREangels is implementing a new way of getting returns at a faster pace than we used to.
With this new method we are putting into action at COREangels, there is no need to wait until the start-up's next financing rounds or a Merger and Acquisition, giving Angel investors elasticity and security when investing.
We want to reduce risks as well as give investors reliability by offering a very diversified portfolio. This is why we think the intramarket will change the journey of Angel Investment as we know it.
Intrigued? Watch out for the second part of this article where we will dive deeper into COREangels’ intramarket.